Chainlink price hits 6-week high. Is $20 LINK the next step?

Chainlink (LINK) price rose 7% on May 24 despite the overall slump in the cryptocurrency market.

LINK, currently priced at $17.04, has seen an impressive 30% gain so far in May, which has investors wondering if the factors still exist to drive a rally above $20.

Let’s take a look at the factors that could push LINK prices higher.

On-chain indicators indicate positive sentiment towards LINK price.

On-chain indicators are painting a bullish picture for LINK, with the price reaching a six-week high of $17.50 on May 24, significantly outperforming other cryptocurrencies, according to a May 24 post from market intelligence firm Santiment. .

According to the data, LINK’s ratio of profitable trades to losing trades is 11:1, representing the most favorable ratio since December 8, 2022.

“Chainlink has decoupled from the market and hit a six-week high, with profit levels at their highest in 17 months.”

Additional data from Santiment shows that activity on the Chainlink network has been increasing since mid-May. The chart below shows that the number of daily active addresses associated with the Chainlink blockchain increased from 3,159 on May 14 to $11,304 on May 22. Meanwhile, development activity has surged from 421 unique GitHub repositories in mid-April to the current value of 436. .

In a May 22 post by

“Chainlink, Status and Ethereum are the most developed ERC-20s in the cryptocurrency space and traders look forward to new ETFs.”

Increasing network activity means more people are using the Chainlink blockchain, which means higher demand and value for LINK.

LINK price is supported by a strong technical setup.

LINK price rebounded from the horizontal support of the descending triangle at $13 on May 15, rising 36% to hit a six-week high at $17.50 on May 24, according to data from Cointelegraph Markets Pro and TradingView.

This upward trend caused the price to break out of the bearish triangle and turn key resistance levels into support. This includes the $15 barrier, encompassed by the 50-day and 200-day exponential moving averages (EMA) and the 100-day EMA, which is currently at $16. . These moving averages provide strong support for a downtrend in LINK.

Additionally, during the same period, the relative strength index (RSI) also increased from 36 to 65. This means that buyers have controlled the price, reinforcing the strength of the uptrend.

Additionally, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model showed that LINK enjoyed relatively strong support on the downside compared to resistance on the upside.

This means that the path of least resistance for LINK is upwards.

Related: Chainlink (LINK) has surpassed its one-year high of $20.

Traders expect upside in LINK price.

Independent trader Crypto Yapper acknowledged that LINK is out of a bearish triangle, as explained earlier, and said the price “looks bullish.” Yapper added in a post on the

“If we see a breakout, we can expect a retest to turn this resistance into support.”

Fellow trader Mister Crypto expressed confidence in Chainlink’s future price performance, saying that LINK will easily break the $50 mark once again during this bull run.

Chainlink Red Pill, another

“Chainlink will make the tokenization of the world’s largest financial institutions incredibly profitable,” he said, urging more than 17,000 Flowers to recognize the opportunity ahead for LINK, which could grow 100x from current levels.

“I wouldn’t be at all surprised if it fell 50 to 100 times from here. “Most likely.”

This sentiment reflects growing optimism surrounding Chainlink’s fundamental value and its potential to drive significant growth in the cryptocurrency market.